Hilton Worldwide is cutting its global corporate staff by 22
per cent, representing 2,100 people, and extending for another three months the
furloughs, reduced hours and pay cuts that were announced in late March, the
company announced on Tuesday.
The moves are a result of the devastating effects of
Covid-19 on the hospitality industry, according to Hilton, and follow related
announcements made by Marriott International and Hyatt Hotels in recent weeks.
"Never in Hilton's 101-year history has our industry
faced a global crisis that brings travel to a virtual standstill," said
Hilton president and CEO Christopher Nassetta in a statement. "Hospitality
will always be a business of people serving people, which is why I am
devastated that to protect our business, we have been forced to take actions
that directly impact our team members."
As announced in March, Nassetta will forego 100 per cent of
his salary for the remainder of the year, executive committee members' salaries
have been reduced by 50 per cent, and non-furloughed staff salaries have been
reduced up to 20 per cent. No additional salary cuts were made with this new
announcement, according to a company spokesperson.
The hotel industry has been particularly hard-hit by the
coronavirus pandemic, with the weekly US occupancy level dropping as low as
21.6 per cent in April, though it has begun to recover and was at 39.3 per cent
for the week ending 6 June, according to STR. Still, that is far from its 66.1
per cent level of full-year 2019.
Thousands of hotels around the globe also have closed during
the pandemic. At its peak, Hilton had about 950 hotels with suspended
operations globally; today the number is roughly half that, according to a